1. A consequence of the economic problem of scarcity is that:
a. Choices have to be made about how resources are used.
b. There is never too much of any good or service produced.
c. The production of goods and services must be controlled by the government.
d. The production-possibilities curve is bowed outward.
2. Microeconomics is concerned with issues such as:
a. The level of inflation in the economy
b. The demand for bottled water by individuals.
c. Maintaining a strong level of economic growth.
d. All of the choices.
3. In economics, scarcity means that:
a. A shortage of a particular good will cause the price to fall
b. A production possibilities curve cannot accurately represent the tradeoff between two goods.
c. Society's desires exceed the want-satisfying capability of the resources available to satisfy those desires.
d. The market mechanism has failed
4. A city's decision to limit smoking in public areas is an example of
a. The invisible hand at work.
b. The market mechanism at work.
c. Market failure.
d. Government intervention
